REG - Lok'nStore Group - Preliminary Results <Origin Href="QuoteRef">LOK.L</Origin> - Part 2
19/10/2015 07:00
- Part 2: For the preceding part double click ID:nRSS5935Ca
7 (686) (170)
Profit for the year 1,968 197
Profit attributable to:
Owners of the parent 22 1,968 197
Other Comprehensive Income
Items that will not be reclassified to profit and loss
Increase in property valuation 8,009 6,281
Deferred tax relating to change in property valuation (1,578) (1,261)
6,431 5,020
Items that may be subsequently reclassified to profit and loss
(Decrease)/increase in fair value of cash flow hedges (170) 322
Deferred tax relating to cash flow hedges 38 (72)
(132) 250
Other comprehensive income 6,299 5,270
Total comprehensive income for the year Attributable to: 8,267 5,467
Owners of the parent 8,267 5,467
Earnings per share
Basic 9 7.84p 0.81p
Diluted 9 7.64p 0.79p
1 Adjusted EBITDA and operating profit are defined in the accounting policies section of the notes to the financial
statements.
Consolidated Statement of Changes in Equity
For the year ended 31 July 2015
Sharecapital£'000 Sharepremium£'000 Otherreserves£'000 Revaluationreserve£'000 Retainedearnings£'000 Attributableto owners ofthe parent£'000 Noncontrollinginterest£'000 Totalequity£'000
1 August 2013 272 1,013 10,511 21,665 6,631 40,092 280 40,372
Profit for the year - - - - 197 197 - 197
Other comprehensive income:
Increase in property valuation net of deferred tax - - - 5,020 - 5,020 - 5,020
Increase in fair value of cash flow hedges net of deferred tax - - 250 - - 250 - 250
Total comprehensive income for the year - - 250 5,020 197 5,467 - 5,467
Transactions with owners:
Dividend paid - - (1,543) - - (1,543) - (1,543)
Share based payments - - 119 - - 119 - 119
Transfers in relation to share based payments - - (742) - 742 - - -
Acquisition of non-controlling interests - - - - 280 280 (280) -
Exercise of share options 7 788 - - - 795 - 795
Total transactions with owners 7 788 (2,166) - 1,022 (349) (280) (629)
Transfer additional dep'n on revaluation net of deferred tax - - - (207) 207 - - -
1 August 2014 279 1,801 8,595 26,478 8,057 45,210 - 45,210
Profit for the year - - - - 1,968 1,968 - 1,968
Other comprehensive income:
Increase in property valuation net of deferred tax - - - 6,431 - 6,431 - 6,431
Increase in fair value of cash flow hedges net of deferred tax - - (132) - - (132) - (132)
Total comprehensive income for the year - - (132) 6,431 1,968 8,267 - 8,267
Transactions with owners:
Dividend paid - - - - (1,847) (1,847) - (1,847)
Share based payments - - 211 - - 211 - 211
Transfers in relation to share based payments - - (298) - 298 - - -
Deferred tax credit relating to share options1 - - 309 - - 309 - 309
Exercise of share options 6 813 - - - 819 - 819
Total transactions with owners 6 813 222 - (1,549) (508) - (508)
Transfer realised gain on asset disposal - - - (421) 421 - - -
Transfer additional dep'n on revaluation net of deferred tax - - - (249) 249 - - -
31 July 2015 285 2,614 8,685 32,239 9,146 52,969 - 52,969
Company Statement of Changes in Equity
For the year ended 31 July 2015
Sharecapital£'000 Sharepremium£'000 Retaineddeficit£'000 Otherreserves£'000 Total£'000
1 August 2013 272 1,013 (735) 4,433 4,983
Total comprehensive income - - (174) - (174)
Dividend paid - - - (1,543) (1,543)
Share based payments - - - 119 119
Transfers in relation to share based payments - - 742 (742) -
Exercise of share options 7 788 - - 795
31 July 2014 279 1,801 (167) 2,267 4,180
Total comprehensive income - - (139) - (139)
Share based payments - - - 211 211
Transfers in relation to share based payments - - 298 (298) -
Exercise of share options 6 813 - - 819
31 July 2015 285 2,614 (8) 2,180 5,071
Statements of Financial Position
31 July 2015 Company Registration No.
04007169
Notes Group2015£'000 Group2014£'000 Company2015£'000 Company2014£'000
Assets
Non-current assets
Intangible assets 10a 3,758 3,923 - -
Property, plant and equipment 10b 87,802 77,679 - -
Investments 11 - - 2,106 1,895
Development loan capital 12 2,779 - - -
Amounts due from subsidiary undertakings 26 - - 2,965 2,285
Derivative financial instruments 17b - 51 - -
94,339 81,653 5,071 4,180
Current assets
Inventories 13 141 131 - -
Trade and other receivables 14 2,479 2,901 - -
Cash and cash equivalents 16 2,435 2,178 - -
Total current assets (excluding non-current assets classified as held for sale) 5,055 5,210 - -
Non-current assets classified as held for sale 10d - 2,900 - -
Total assets 99,394 89,763 5,071 4,180
Liabilities
Current liabilities
Trade and other payables 15 (5,971) (5,900) - -
Current tax liabilities 7 (535) (338) - -
(6,506) (6,238) - -
Non-current liabilities
BorrowingsDerivative financial instrumentsDeferred tax 17a17b18 (27,548)(119)(12,252) (27,445)-(10,870) --- ---
(39,919) (38,315) - -
Total liabilities (46,425) (44,553) - -
Net assets 52,969 45,210 5,071 4,180
Equity
Equity attributable to owners of the parent
Called up share capital 19 285 279 285 279
Share premium 2,614 1,801 2,614 1,801
Other reserves 21 8,685 8,595 2,180 2,267
Retained earnings / (deficit) 22 9,146 8,057 (8) (167)
Revaluation reserve 32,239 26,478 - -
Total equity attributable to owners of the parent 52,969 45,210 5,071 4,180
Approved by the Board of Directors and authorised for issue on 16 October 2015 and signed on its behalf by:
Andrew Jacobs Ray Davies
Chief Executive Officer Finance Director
Consolidated Statement of Cash Flows
For the year ended 31 July 2015
Notes 2015£'000 2014£'000
Operating activities
Cash generated from operations 24a 5,984 5,241
Income tax paid (338) -
Net cash generated from operations 5,646 5,241
Investing activities
Development loan capital (2,650) -
Purchase of property, plant and equipment (3,583) (6,485)
Proceeds from disposal of property, plant and equipment 2,901 19
Interest received 12 26
Net cash used in investing activities (3,320) (6,440)
Financing activitiesProceeds from new borrowingsRepayment of borrowings -- 919(5)
Finance costs paid (1,041) (1,033)
Equity dividends paid (1,847) (1,543)
Proceeds from issue of ordinary shares (net) 819 795
Net cash used in financing activities (2,069) (867)
Net increase/(decrease)in cash and cash equivalents in the year 257 (2,066)
Cash and cash equivalents at beginning of the year 2,178 4,244
Cash and cash equivalents at end of the year 2,435 2,178
No statement of cash flows is presented for the Company as it had no cash flows in either year.
Accounting Policies
General Information
Lok'nStore Group plc is an AIM listed company incorporated and domiciled in England and Wales. The address of the
registered office is One London Wall, London EC2Y 5AB, UK.
The preliminary financial information does not constitute full statutory accounts within the meaning of section 434 of the
Companies Act 2006 but is derived from statutory accounts for the years ended 31 July 2015 and 31 July 2014, both of which
are audited. The preliminary announcement is prepared on the same basis as set out in the statutory accounts for the year
ended 31 July 2015. While the financial information included in this preliminary announcement has been prepared in
accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS), as adopted
by the European Union (EU), this announcement does not in itself contain sufficient information to comply with IFRSs.
The statutory accounts for the year ended 31 July 2015 will be delivered to the Registrar of Companies following the
Company's Annual General Meeting and can be obtained from the investor section of the Company's website at
http://www.loknstore.co.uk. Statutory accounts for the year ended 31 July 2014 have been filed with the Registrar of
Companies. The auditor's report for the year ended 31 July 2015 was unqualified, did not include a reference to any matter
to which the auditor drew attention by way of emphasis without qualifying their report and did not contain any statement
under section 498(2) or (3) of the Companies Act 2006.
Basis of accounting
The annual financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS)
and International Financial Reporting Interpretations Committee (IFRIC) Interpretations as adopted by the European Union
and comply with those parts of the Companies Act 2006 that are applicable to companies reporting under IFRS. The Group has
applied all accounting standards and interpretations issued by the International Accounting Standards Board and
International Financial Reporting Interpretation Committee relevant to its operations and effective for accounting periods
beginning on or after 1 August 2014.
The financial statements have been prepared on the historic cost basis except that certain trading properties and
derivative financial instruments are stated at fair value.
Adoption of new and revised standards
The following relevant new standards, interpretations and amendments have been adopted in the year but have no significant
impact.
IFRS 10: Consolidated Financial Statements
IFRS 11: Joint Arrangements
IFRS 12: Disclosure of Interest in Other Entities
Amendment to IAS 19: Employee Benefits
Amendment to IAS 27: Separate Financial Statements
Amendment to IAS 28: Investments in Associates and Joint Ventures
Amendment to IAS 32: Offsetting Financial Assets and Financial Liabilities
Amendment to IAS 36: Impairment of Assets
Amendment to IAS 39: Financial Instruments: Recognition and Measurement
Standards in issue but not yet effective
At the date of approval of these financial statements, the following principal standards and interpretations which were in
issue but not yet effective:
Standards, interpretations and amendmentsNotYetEndorsed Effectivedate: Periods commencing onorafter
IFRS9 FinancialInstruments 1Jan 18
IFRS10 andIAS 28 Sale or Contribution of AssetsbetweenanInvestoranditsAssociate orJoint Venture 1Jan 16
IFRS11 AccountingforAcquisitionsofInterests inJointOperations 1Jan 16
IFRS15 Revenue fromContracts withCustomers 1Jan 18
IAS16 and IAS 38 Clarification ofAcceptable Methodsof Depreciation and Amortisation 1Jan 16
IAS 27 EquityMethod inSeparateFinancial Statements 1Jan 16
IAS 1 Disclosure Initiative 1 Jan 16
The Directors do not anticipate that the adoption of these Standards will have a significant impact on the financial
statements of the Group.
There were no other Standards or Interpretations, which were in issue but not yet effective at the date of authorisation of
these financial statements, that the Directors anticipate will have a material impact on the financial statements of the
Group.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the
Company (its subsidiaries) made up to 31 July each year. Control is achieved where the Company has power over the investee,
exposure or rights to variable returns from the investee and the ability to use its power to vary those returns.
Intra-group transactions, balances, and unrealised gains and losses on transactions between Group companies are eliminated
on consolidation, except to the extent that intra-group losses indicate an impairment.
Critical accounting estimates and judgements
The preparation of consolidated financial statements under EU-IFRS requires management to make estimates and assumptions
that may affect the application of accounting policies and the reported amounts of assets and liabilities, income and
expenses. Actual outcomes may differ from these estimates and assumptions. The estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year are discussed below.
a) Estimate of fair value of trading properties
The Group values its self-storage stores using a discounted cash flow methodology which is based on current and projected
net operating income. Principal assumptions underlying management's estimation of the fair value are those relating to
stabilised occupancy levels; expected future growth in storage rents and operating costs, maintenance requirements,
capitalisation rates and discount rates. A more detailed explanation of the background and methodology adopted in the
valuation of the Group's trading properties is set out in note 10b. The carrying value of land and buildings held at
valuation at the reporting date was £61.0 million (2014: £51.4 million) as shown in the table in note 10b.
b) Assets in the course of construction and land held for pipeline store development ('Development property assets')
The Group's development property assets are held in the statement of financial position at historic cost and are not valued
externally. In acquiring sites for redevelopment into self-storage facilities, the Group estimates and makes judgements on
the potential net lettable storage space that it can achieve in its planning negotiations, together with the time it will
take to achieve maturity occupancy level. In addition, assumptions are made on the storage rent that can be achieved at the
store by comparison with other stores within the portfolio and within the local area. These judgements, taken together with
estimates of operating costs and the projected construction cost, allow the Group to calculate the potential net operating
income at maturity, projected returns on capital invested and hence to support the purchase price of the site at
acquisition. Following the acquisition, regular reviews are carried out taking into account the status of the planning
negotiations, and revised construction costs or capacity of the new facility, for example, to make an assessment of the
recoverable amount of the development property. The Group reviews all development property assets for impairment at each
reporting date in the light of the results of these reviews. Once a store is opened, it is valued as a trading store.
The carrying value of development property assets at the reporting date was £8.9 million (2014: £11.4 million). Please see
note 10b for more details.
c) Estimate of fair value of intangible assets acquired in business combination
The relative size of the Group's intangible assets, excluding goodwill, makes the judgements surrounding the estimated
useful lives important to the Group's financial position and performance. At 31 July 2015 intangible assets, excluding
goodwill, amounted to £2.65 million (2014: £2.81 million). The valuation method used and key assumptions are described in
note 10a.
The useful life used to amortise intangible assets relates to the expected future performance of the assets acquired and
management's judgement of the period over which economic benefit will be derived from the asset. The estimated useful life
of customer relationships principally reflects management's view of the average economic life of the customer base and is
assessed by reference to customer churn rates. Typically, the customer base for a serviced archive business is relatively
inert. Corporate customers do not tend to switch service providers and indeed they incur box withdrawal charges should they
do so. An increase in churn rates may lead to a reduction in the estimated useful life and an increase in the amortisation
charge.
d) Non-current assets held for sale
Non-current assets are classified as assets held for sale when their carrying amount is to be recovered principally through
a sale transaction and a sale is considered highly probable. They are stated at the lower of carrying amount and fair value
if their carrying amount is to be recovered principally through a sale transaction rather than through continuing use and a
sale is considered highly probable.
Notes to the Financial Statements
For the year ended 31 July 2015
1a Revenue
Analysis of the Group's revenue is shown below:
2015 2014
Stores trading £'000 £'000
Self-storage revenue 11,851 10,510
Other storage related revenue 1,434 1,349
Ancillary store rental revenue 4 4
Management fees 176 128
Sub-total 13,465 11,991
Stores under development
Non-storage income 3 79
Sub-total 13,468 12,070
Document storage revenue 1,956 1,840
Total revenue 15,424 13,910
1b Segmental information
IFRS 8 Operating Segments requires operating segments to be identified on the basis of internal reports about components of
the Group that are regularly reviewed by the Board to allocate resources to the segments and to assess their performance.
All of the Group's activities occur in the United Kingdom.
Financial information is reported to the Board with revenue and profit analysed between self-storage activity and serviced
document storage activity.
Segment revenue comprises of sales to external customers and excludes gains arising on the disposal of assets and finance
income. Segment profit reported to the Board represents the profit earned by each segment before acquisition costs and
other non-recurring set-up costs, finance income, finance costs and tax. For the purposes of assessing segment performance
and for determining the allocation of resources between segments, the Board uses a measure of adjusted EBITDA (as defined
in the accounting policies) and reviews the non-current assets attributable to each segment as well as the financial
resources available. All assets are allocated to reportable segments. Assets that are used jointly by segments are
allocated to the individual segments on a basis of revenues earned. All liabilities are allocated to individual segments
other than borrowings and tax. Information is reported to the Board of Directors on a product basis as management believe
that the activity of self-storage and the activity of serviced document storage expose the Group to differing levels of
risk and rewards due to the length, nature, seasonality and customer base of their respective operating cycles.
The segment information for the year ended 31 July 2015 is as follows:
2015 Self-storage 2015£'000 Serviced archive &records management2015£'000 Total2015£'000
Revenue 13,468 1,956 15,424
Adjusted EBITDA 5,420 262 5,682
Management charges 25 (25) -
Segment Adjusted EBITDA 5,445 237 5,682
DepreciationAmortisation of intangible assets (1,340)- (100)(165) (1,440) (165)
Equity settled share based payments (211) - (211)
Irrecoverable property costs (209) - (209)
Segment profit/(loss) 3,685 (28) 3,657
Central costs not allocated to segments:
Finance income 141
Finance costs (1,144)
Profit before taxation 2,654
Income tax expense (686)
Consolidated profit for the financial year 1,968
2014 Self-storage 2014£'000 Serviced archive &records management2014£'000 Total2014£'000
Revenue 12,070 1,840 13,910
Adjusted EBITDA 4,378 238 4,616
Management charges 25 (25) -
Segment Adjusted EBITDA 4,403 213 4,616
Depreciation and loss on saleAmortisation of intangible assets (1,135)- (116)(165) (1,251) (165)
Equity settled share based payments (119) - (119)
Impairment of development land asset (1,604) - (1,604)
Segment profit/(loss) 1,545 (68) 1,477
Central costs not allocated to segments:
Finance income 26
Finance costs (1,136)
Profit before taxation 367
Income tax expense (170)
Consolidated profit for the financial year 197
Corporate transactions and the treasury function are managed centrally and therefore are not allocated to segments. Sales
between segments are carried out at arm's length. The serviced archive segment with over 360 customers has a greater
customer concentration with its ten largest corporate customers accounting for 34.6% (2014: 31.4%) of revenue, its top 50
customers accounting for 63.3% (2014: 59.3%) and its top 100 customers accounting for 79.9% (2014: 74.7%) of revenue. The
self-storage segment with over 7,750 customers has no individual self-storage customer accounting for more than 1% of total
revenue and no group of entities under common control (e.g. Government) accounts for more than 10% of total revenues.
2015 Self-storage2015£'000 Serviced archive &records management2015£'000 Total2015£'000
Segment assets 93,296 6,098 99,394
Segment liabilities (18,341) (536) (18,877)
Borrowings (27,548)
Total liabilities (46,425)
Capital expenditure 3,126 457 3,583
2014 Self-storage2014£'000 Serviced archive &records management2014£'000 Total2014£'000
Segment assets 83,803 5,960 89,763
Segment liabilities (16,379) (729) (17,108)
Borrowings (27,445)
Total liabilities (44,553)
Capital expenditure1 6,269 215 6,484
1 Capital expenditure includes fixed asset additions (note 10b) and additions to property lease premiums (note 10c)
The amounts presented to the Board with respect to total assets and total liabilities are measured in a manner consistent
with the financial statements and are allocated based on the operations of the segment. Borrowings are managed centrally on
a Group basis and are therefore not allocated to segments.
2a Property, staff, distribution and general costs
2015£'000 2014£'000
Property and premises costs 4,010 3,689
Staff costs 4,188 3,971
General overheads 1,049 1,153
Distribution costs 190 189
Retail products cost of sales (see note 2b) 305 292
9,742 9,294
2b Cost of sales of retail products
Cost of sales represents the direct costs associated with the sale of retail products (boxes, packaging etc.), the
ancillary sales of insurance cover for customer goods and the provision of van hire services, all of which fall within the
Group's ordinary activities.
2015£'000 2014£'000
Retail 130 149
Insurance 33 32
Van hire/other 2 6
165 187
Serviced archive consumables and direct costs 140 105
305 292
2c Other costs
2015£'000 2014£'000
Impairment of development land asset (see note 10b) - 1,604
Irrecoverable property costs1 209 -
209 1,604
1 Site demolition costs not recoverable from the prospective purchaser of the Portsmouth North site.
3 Finance income
2015£'000 2014£'000
Bank interest 141 26
All interest receivable arises on cash and cash equivalents (see note 16).
4 Finance costs
2015£'000 2014£,000
Bank interest 925 912
Non-utilisation fees and amortisation of bank loan arrangement fees 219 223
Other interest - 1
1,144 1,136
5 Profit before taxation
2015£'000 2014£'000
Profit before taxation is stated after charging:
Depreciation and amounts written off property, plant and equipment 1,440 1,224
Amortisation of intangible assets 165 165
Operating lease rentals - land and buildings 1,562 1,529
Amounts payable to Baker Tilly UK Audit LLP and their associates for audit and non-audit services:
Audit services
- UK statutory audit of the Company and consolidated accounts 45 43
Other services
-the auditing of accounts of associates of the Company pursuant to legislation 14 17
Other services supplied pursuant to such legislation
- interim review 7 8
Tax services
- compliance services 26 48
- advisory services 13 16
105 132
Comprising:
Audit services 59 60
Non-audit services 46 72
105 132
6 Employees
2015No. 2014No.
The average monthly number of persons (including Directors) employed by the Group during the year was:
Store management 113 107
Administration 30 30
143 137
2015£'000 2014£'000
Costs for the above persons:
Wages and salaries 3,451 3,336
Social security costs 443 426
Pension costs 87 54
3,981 3,816
Share based remuneration (options) 211 119
4,192 3,935
Share based remuneration is separately disclosed in the statement of comprehensive income. Wages and salaries of £132,543
(2014: £129,068) have been capitalised as additions to property, plant and equipment as they are directly attributable to
the acquisition of these assets. All other employee costs are included in staff costs in the statement of comprehensive
income.
In relation to pension contributions, there was £9,260 (2014: £3,913) outstanding at the year-end.
Directors' remuneration
2015 Emoluments£ Bonuses£ Benefits£ Sub total£ Gains onshare options£ Total£
Executive:
A Jacobs 204,000 38,000 4,055 246,055 156,399 402,454
SG Thomas 51,000 9,500 3,724 64,224 50,975 115,199
RA Davies 110,000 15,500 3,063 128,563 55,437 184,000
CM Jacobs 57,834 6,500 3,177 67,511 152,865 220,376
Non-Executive:
RJ Holmes 20,033 - - 20,033 - 20,033
ETD Luker 25,500 - - 25,500 - 25,500
CP Peal 20,400 - - 20,400 - 20,400
488,767 69,500 14,019 572,286 415,676 987,962
2014 Emoluments£ Bonuses£ Benefits£ Sub total£ Gains onshare options£ Total£
Executive:
A Jacobs 200,000 34,000 3,328 237,328 - 237,328
SG Thomas 50,000 8,500 3,702 62,202 222,773 284,975
RA Davies 100,000 18,250 2,789 121,039 19,822 140,861
CM Jacobs 56,700 7,701 3,143 67,544 879 68,423
Non-Executive:
RJ Holmes 20,000 - - 20,000 13,286 33,286
ETD Luker 25,000 - - 25,000 - 25,000
CP Peal 20,000 - - 20,000 - 20,000
D Hampson 11,667 - - 11,667 - 11,667
483,367 68,451 12,962 564,780 256,760 821,540
Pension contributions of £30,475 (2014: £30,475) were paid by the Group on behalf of RA Davies and are not included in the
Directors' emoluments table above. The highest paid Director did not accrue any pension rights during the year. The
benefits in kind all relate to medical insurance premiums paid on behalf of the Directors.
The number of Directors to whom retirement benefits are accruing under money purchase pension schemes in respect of
qualifying service is one (2014: one).
7 Taxation
2015£'000 2014£'000
Current tax:
UK corporation tax at 20.7% (2014: 22.4%) 535 338
Deferred tax:
Origination and reversal of temporary differences 100 (311)
Adjustments in respect of prior periods 51 143
Total deferred tax charge / (credit) 151 (168)
Income tax expense for the year 686 170
The charge for the year can be reconciled to the profit for the year as follows:
2015£'000 2014£'000
Profit before tax 2,654 368
Tax on ordinary activities at the standard rate of corporation tax in the UK of 20.7% (2014: 22.4%) 549 82
Expenses not deductible for tax purposes 2 3
Depreciation of non-qualifying assets 85 41
Share based payment charges in excess of corresponding tax deduction - 26
Adjustments in respect of prior periods - deferred taxOther timing differences 51(1) 143-
Impact of change in rate on timing differences - 7
Sale of Reading recognised for tax purposes - (132)
Income tax expense for the year 686 170
Effective tax rate 26% 46%
The UK's main rate of corporation tax has reduced to 20% from 1 April 2015. The applicable rate for this period is 20.7%.
In addition to the amount charged to profit or loss for the year, deferred tax relating to the revaluation of the Group's
properties of £1,577,896 (2014: £1,261,062) and the movement in the fair value of cash flow hedges of £(37,549) (2014:
£72,051) has been recognised as a debit/credit directly in other comprehensive income (see note 18 on deferred tax).
8 Dividends
2015£'000 2014£,000
Amounts recognised as distributions to equity holders in the year:
Final dividend for the year ended 31 July 2013 (4.33 pence per share) - 1,053
Interim dividend for the six months to 31 January 2014 (2.00 pence per share) - 490
Final dividend for the year ended 31 July 2014 (5.0 pence per share) 1,258 -
Interim dividend for the six months to 31 January 2015 (2.33 pence per share) 589 -
1,847 1,543
In respect of the current year the Directors propose that a final dividend of 5.67 pence per share will be paid to the
shareholders. The total estimated dividend to be paid is £1,444,693 based on the number of shares in issue at 6 October
2015 as adjusted for shares held in the Employee Benefits Trust and for shares held on treasury. This is subject to
approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial
statements. The ex-dividend date will be 29 November 2015; the record date 30 November 2015; with an intended payment date
of 21 December 2015.
9 Earnings per share
The calculations of earnings per share are based on the following profits and numbers of shares.
2015£'000 2014 £,000
Profit for the financial year attributable to owners of the parent 1,968 197
2015No. of shares 2014No. of shares
Weighted average number of shares
For basic earnings per share 25,102,032 24,392,144
Dilutive effect of share options1 654,598 589,427
For diluted earnings per share 25,756,630 24,981,571
623,212 (2014: 623,212) shares held in the Employee Benefit Trust and 2,466,869 (2014: 2,466,869) Treasury shares are
excluded from the above (see note 23).
2015 2014
Earnings per share
Basic 7.84p 7.39p2
Diluted 7.64p 7.21p2
1 Further options that could potentially dilute EPS in the future are excluded from the above because they are not
dilutive in the period presented. Full details of share options are included in note 20.
2 2014 comparatives normalised for 2014 property impairment charge of £1.6 m added back to earnings
10a Intangible assets
Group Goodwill£'000 Contractualcustomerrelationships£'000 Total£'000
Cost at 1 August 2013 1,110 3,309 4,419
Amortisation at 1 August 2013 - (331) (331)
Amortisation charge - (165) (165)
Amortisation at 31 July 2014 - (496) (496)
Net book value at 31 July 2014 1,110 2,813 3,923
Cost at 1 August 2014 1,110 3,309 4,419
Amortisation at 1 August 2014 - (496) (496)
Amortisation charge - (165) (165)
Amortisation at 31 July 2015 - (661) (661)
Net book value at 31 July 2015 1,110 2,648 3,758
All goodwill and customer relationships are allocated to the serviced document storage cash-generating unit (CGU)
identified as a separate business segment.
The remaining amortisation period of the contractual customer relationships at 31 July 2015 is 15 years and 11 months
(2014: 16 years 11 months).
The values for impairment purposes are based on past and current experience of trading, estimated future cash flows and
external information where relevant and derived from the following key assumptions:
· a discount rate of 11%
· estimated useful lives of customer relationships (20 years)
· short term sustainable growth rates of 5% (next 5 years)
· thereafter long term sustainable growth rates of 2.0%
· sensitivity: the Group has conducted a sensitivity analysis on the impairment test of each CGU's carrying value. A
cut in projected sales growth by around 7% would result in the carrying value of goodwill being reduced to its recoverable
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